The Australian Foster's Group today got the green light from shareholders to move ahead with an on-market A$900m share buyback.

At a general meeting this morning shareholders approved the company buying back 125m shares, with the option of a further 75 million shares depending on the market response.

Foster's believes the buyback in necessary because of the expected dilution in earnings per share following the spin off of Australian Leisure and Hospitality Group and the conversion of $US400m of convertible exchangeable bonds, which lead the issuing of an additional 125 million shares.